Washington Condo Resale Certificates: What to Check

A condominium buyer is purchasing more than the rooms behind the unit door. They are also taking on a share of the roof, siding, plumbing, elevators, insurance, reserves, rules, and decisions of the association that operates the building.

The resale certificate is where much of that obligation first becomes visible. It can show current assessments, association debt, planned repairs, reserve information, insurance, litigation, violations, and restrictions that affect how the unit can be used.

The mistake is treating the package as closing paperwork. It is due diligence on the building.

Washington condominium law is in a transition period, and the statute governing a specific community can affect the certificate and review rights.

What a resale certificate is

The seller furnishes the resale certificate to the buyer. The association or its authorized agent prepares it from association records and the actual knowledge of the person signing it.

The certificate pulls together two kinds of information. One concerns the unit being sold: unpaid assessments, violations, fees, and obligations tied to that unit. The other concerns the association as a whole: its budget, financial statements, reserves, anticipated work, insurance, legal disputes, and governing documents.

That distinction matters. A unit can look well maintained while the association faces a roof replacement it has not funded. The reverse is also possible. A building may have a responsible reserve plan even though one unit needs substantial interior work.

The resale certificate is not a substitute for an inspection, insurance review, lender approval, or legal interpretation. Each answers a different question.

Start with the delivery date

Record when you first receive the resale certificate and what documents accompanied it. Immediately confirm the applicable statutory and contractual deadlines. If something is missing, raise it promptly rather than assuming the deadline has not started.

For communities governed by the Washington Uniform Common Interest Ownership Act, RCW 64.90.640 uses five business days and includes specific provisions concerning delivery before the buyer signs the contract. The association generally has ten days after a proper owner request and payment to furnish the certificate.

The deadline is different under the older Condominium Act. RCW 64.34.425 gives the buyer five days after delivery or until conveyance, whichever occurs first. The contract can add requirements of its own. Identify the governing law and contractual deadline for the transaction rather than treating one rule as universal.

Start with money already owed

The easiest obligations to understand are the ones already attached to the unit. Look for:

• Regular assessments currently due

• Delinquent assessments

• Special assessments already levied but not fully paid

• Transfer, move-in, move-out, document, and other association fees

• Unit alterations or violations the association has identified

These entries affect the transaction directly. They can change the amount due at closing, require correction, or become part of negotiation between buyer and seller.

Do not stop there. A certificate showing no unpaid amount against the unit says nothing by itself about the association's ability to pay for the next major project.

Read the budget and financial statements together

An association budget shows what the board planned to collect and spend. The financial statements show what happened.

Compare them. Look for recurring operating deficits, rising insurance or utility costs, delinquent owners, unpaid association obligations, and maintenance that appears repeatedly without resolution. One unusual year can have an explanation. A repeated gap between budget and actual spending is a pattern worth understanding.

There is no universal healthy dues number. Two similar buildings can have very different monthly assessments because one includes utilities, staffing, elevators, parking, or major amenities and the other does not. Lower dues are not automatically better if they leave the association unable to maintain the property.

The reserve study is a schedule, not a promise

A reserve study inventories major building components, estimates their remaining useful life, estimates replacement cost, and models how the association might fund that work.

Read it beside the current reserve balance and contribution plan. The useful questions are:

• What large projects are expected next?

• How soon are they expected?

• What did the study estimate they would cost?

• How much has the association actually reserved?

• Have construction costs or building conditions changed since the study?

• Is the board following the funding plan?

A funded-percentage figure can be useful, but it is not a verdict. A building with modest reserves after completing a major project may be in a different position from a building with the same balance and a roof replacement approaching.

Look for assessments before they become assessments

A formal special assessment should be disclosed. An expensive project can develop long before the board votes on the final amount.

Under RCW 64.90.640, the required materials include the previous 12 months of meeting minutes and the current reserve study. The older statute lists the current reserve study, if any, but does not contain the same express minutes requirement. Confirm which records the governing law requires and raise missing items promptly.

Read recent board and owner meeting minutes for repeated discussion of roofs, siding, windows, elevators, plumbing, decks, water intrusion, engineering studies, insurance claims, or contractor proposals. One mention may be routine. The same unresolved subject across several meetings may indicate that a decision is forming.

This is why the certificate summary alone may not be enough. The supporting documents show how the association reached its current position and what it is considering next.

Insurance affects both ownership and financing

The association's master policy covers shared property under its terms. The buyer still needs a unit-owner policy, and the line between the two matters.

Review the master-policy type, stated limits, significant deductibles, recent claims, and any indication of nonrenewal or restricted coverage. Water and earthquake deductibles can create exposures a buyer does not see by looking only at monthly dues.

A lender may also review the building's insurance, budget, owner occupancy, delinquencies, litigation, and other project characteristics. Lender approval means the property met that loan program's requirements. It does not mean every association risk is acceptable to the buyer.

Insurance questions belong with an insurance professional. Financing questions belong with the lender. The broker's job is to keep those reviews moving before the document deadline expires.

Litigation and building problems need context

Pending litigation can involve construction defects, collections, an owner dispute, an insurance claim, or another issue with very different consequences. The existence of a lawsuit does not automatically make a condominium unfinanceable or a bad purchase. It does mean the buyer needs to understand the subject, potential exposure, insurance involvement, and likely timeline.

The same applies to known building-code issues, occupancy questions, violations, or major repairs. A buyer should not diagnose them from a line in the certificate. The right next step may involve an attorney, lender, inspector, engineer, insurance professional, or a combination of them.

Read the rules as ownership terms

Association rules are not fine print if they change how the buyer plans to use the unit. Check:

• Rental caps, waiting periods, and leasing procedures

• Short-term rental restrictions

• Pet limits

• Parking and storage assignments

• Move reservations and fees

• Flooring and noise rules

• Remodeling approval

• Home-business restrictions

• Sign and display restrictions

These are not necessarily defects. They are fit questions. A strict rental cap may be a benefit to one buyer and a deal breaker to another.

What the package cannot answer

Document review does not establish the current physical condition inside the unit. It may not reveal a building issue that has never been reported or discussed. It cannot predict future board votes, insurance markets, construction costs, or special assessments.

It also cannot tell a buyer what an ambiguous restriction means in their specific situation. When a planned use depends on the interpretation, get that answer before the deadline rather than assuming the most convenient reading.

A ten-minute first pass

Before the deeper review, answer these questions:

1. When was the resale certificate first received, what accompanied it, and when does the applicable review period end?

2. Are any assessments or violations attached to the unit?

3. What major projects are approaching?

4. Do current reserves and contributions align with those projects?

5. Do recent minutes mention unresolved repairs, claims, or assessments?

6. What are the major insurance deductibles and open claims?

7. Is litigation disclosed?

8. Do the rental, pet, parking, and remodeling rules fit the buyer's plans?

9. Which questions require an attorney, lender, inspector, engineer, accountant, or insurance professional?

The goal is not to find a building with no future costs. Shared buildings will always have them. The goal is to understand the obligations, funding, and decision-making the buyer is joining.

A Skyline broker can organize the materials and route specialized questions while the buyer and qualified advisers evaluate the risk before the applicable deadline.

This article provides general information, not legal, financial, lending, insurance, or inspection advice. Washington law is in transition, governing documents differ, and contract terms control important deadlines. Confirm the current requirements for the specific transaction with qualified professionals.